A Firm Produces and Sells Two Products, Plus and Max $\begin{array}{llcc} \text { Cost per setup } &\$1,080 \\ \text {Total setup cost } &\$64,800\end{array}$

question 44

Multiple Choice

A firm produces and sells two products, Plus and Max. The following information is available relating to setup costs (a part of factory overhead) : $\begin{array}{llcc} \text { Cost per setup } &\$1,080 \\ \text {Total setup cost } &\$64,800\end{array}$
With traditional allocation of overhead costs, using direct labor hours as the allocation base, the setup cost portion of overhead that is allocated to each unit of product for Plus and Max, respectively is:

• A) $.80; $.80.
• B) $3.20; $3.20.
• C) $4.00; $4.00.
• D) $160.00; $12,800.00.
• E) $200.00; $16,000.00.

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Definitions:

Biopsychosocial Approach

An integrative perspective that considers biological, psychological, and social factors in understanding health and illness.

Central Nervous System

The complex of nerve tissues that controls the activities of the body, comprising the brain and the spinal cord.

Psychological Influence

Refers to the effect that the thoughts, feelings, and behaviors of individuals can have on each other, often studied in social psychology.

Learned Associations

Learned associations refer to connections formed between two or more stimuli or between stimuli and responses, which are developed through conditioning processes.